Nomura fined for breaching derivatives trading rules

Nomura, Japan's largest broker, has been fined $2.9 million for breaching rules regarding its International Equity Derivatives (IED) business.

The company was penalised by the UK's Financial Services Authority (FSA) after it discovered "fundamental" systems and control failings in the IED books.

Margaret Cole, FSA director of enforcement and financial crime, said the regulator would not hesitate to act in cases where it felt required standards had not been adhered to.

"Financial instruments must be valued correctly by traders and a firm's systems and controls must be able to minimize the risk of traders mismarking their positions," she said.

Two workers have been fired by Nomura for their involvement in the breaches, Bloomberg has reported.

An unnamed source told the media outlet that a Hong Kong-based trader and the employee's manager have now left the company.

Last month, Nomura announced a net profit for the first half of the year of $430,000.

By Claire Archer